7 Secrets to Find the Right Financial Coach

How do you find someone who will not waste your time, efforts or money in your quest for financial success? Whatever your biases, I believe it is critical that you find someone who can maximize your potential, time, and money. You only have so much, and there are many people who can lead you astray. If you interview five people to be your financial coach, will you be drawn to the one who tells you the truth or those who tell phenomenal stories of success and conquest?

We all want an easy answer; however, a one-size-fits-all answer does not help us to achieve financial success. Financial success begins when we uncover the truth about our own unique financial circumstances and learn the truth about investing. If you are looking for the truth, and not a story, here are seven questions to ask to help you find the right financial coach.

1. What is your process?
Recommending investments without first going through the process of understanding your needs, goals, and risk tolerance is just selling.  Many will tell you that they are a financial planner, but if the plan they deliver is not different than any of the other plans they have delivered before, it’s not financial planning. Do not be impressed by a thirty, 60, or 90 page document that is loaded with filler. Their process should include discovery, discussion, and adequate time getting to know where your heart and head are so you become the engine of the plan.

2. What is your deliverable?
Many in the industry only offer one product, one solution, or represent one company. This means that no matter who they talk to they have a phenomenal story about how that product, solution, or company is the best and why you need it. If anyone tells you there is a best company, product, or solution, run don’t walk. There are lots of products, solutions and companies. Through planning, with your goals and dreams in sight, you and your financial coach can help determine the best ones for you.

3. What is your sweet spot?
While you may want to work with a financial coach, if you don’t fit their sweet spot, you most likely won’t get the attention and service you need for it to be of real benefit to you. Anyone can take you as a client, but do they really want to work with you? I used to have 2400 clients and never did a good job for any of them. It wasn’t until I had fewer clients, and worked with only those that best fit my practice, that I become profitable enough to be my best for all of my clients. Focus leads to great process.

4. What is your education?
When I started in the business I realized that most people in the industry come from one of several biases: insurance, investments, or financial planning. The insurance agents, which I was when I started, often think that all their answers can be provided by insurance products. Many investment advisors think that if you are not getting high returns, why do it. Often financial planners will do a plan but then lack in implementation. What is of great benefit is to find someone that is educated in the insurance industry, financial planning industry, and has the investment licenses and credentials to help you find the best solutions wherever you need to go. This type of financial coach has the knowledge and expertise to represent all three areas throughout all the stages of your life.

5. Are you independent?
If the financial coach you interview is an employee of a company, or works for a company that manufactures products, or has a sales quota, they are not independent. Many people will tell you they are independent but fall into this category. True independence is free from the influences of company biases and sales quotas.

6. How do you get paid?
There are three ways financial coaches get paid: commission, fee, or asset-based compensation. Ask the question, not to determine how they get paid, but to see how they answer. If they hesitate or get bothered by the question, do they really believe in what they do? Someone who believes in themselves, believes in their value, and expects to get paid for their expertise will not mind discussing it with you.

7. Do I trust you?
If you engage with someone and do not feel trust, or do not develop trust as you work together, you need to find someone else. Procrastination is a leading cause of financial failure and if you do not trust someone, you will likely second-guess their suggestions and put off making good decisions. Only work with a financial coach who you trust, no matter how knowledgeable or highly recommended they come.

Finding the right financial coach can lead to a rewarding, beneficial, and long-lasting relationship. It’s worth it to take your time, ask the right questions, and choose wisely!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.